Changing MDB capital structures — trade-offs for MDBs, governments and investors in building lending capacity
What it examines
Examines hybrid capital, contingent capital facilities and non-voting shares as ways to increase multilateral development banks’ lending capacity. The authors compare their costs, governance implications and demands on shareholders. They argue these instruments can complement conventional equity, while each brings trade-offs. Their financial modelling is illustrative rather than a forecast.
Why it matters
Relevant to UK shareholder decisions about how to support lending capacity and which costs or contingent risks to accept. The paper does not establish a new UK commitment. Its going-concern contingent capital facilities are distinct from existing treaty-based callable capital.
Institutions and themes
Related documents
Catalogue entry reviewed 16 Oct 2026. The summary describes the publication’s analysis; it does not establish that historical findings remain current.